new Delhi. The problem of liquidity of micro, small and medium companies (MSMEs) is slowly ending. Under the Emergency Credit Line Guarantee Scheme (ECLGS), the government is making all possible efforts to overcome the financial constraints of this sector at the earliest. Finance Minister Nirmala Sitharaman’s office said in a tweet that under ECLGS, public and private banks have allotted loans of Rs 1,10,343.77 crore till July 1. Due to this, loans worth more than Rs 52 thousand crore have also been disbursed.
According to the tweet, under the 100 percent ECLGS, the loan allocation of the MSME sector increased by Rs 10,000 crore in the last six days ending July 1. The loan disbursement has also increased by Rs 7,000 crore in these six days.
Significantly, ECLGS has the highest share in the recently announced economic package of more than Rs 20 lakh crore by the central government. The Finance Minister and the Ministry are holding review meetings with banks at regular intervals to ensure that the MSME sector does not face any problem in getting loans. The purpose of this package is to relieve more than 3 million small-scale companies from financial difficulties in restarting business after the end of lockdown.
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